Thursday, November 13, 2008

FOXES IN THE CHICKEN COOP: JAMIE GORELICK

Investors Business Daily - Gorelick earned an estimated $26 million serving as vice chair of Fannie Mae from 1998 to 2003. In 1998, according to the Washington Post , Gorelick received a bonus of $779,625, despite a scandal in which employees falsified signatures on accounting transactions to manipulate books to meet 1998 earning targets.

In 2003, she got a "Friends of Angelo" sweetheart mortgage deal from Countrywide Financial for almost $1 million. Her $960,000 mortgage refinancing in 2003 was handled through a program reserved for influential figures and friends of Countrywide's chief executive at the time, Angelo Mozilo.

Countrywide's loans on preferential terms to influential figures are the subject of a federal grand jury investigation in Los Angeles, according to people involved in the inquiry. So Gorelick is in fact under investigation by the department she might soon be running.

On March 25, 2002, Business Week quoted Gorelick as saying: "We believe we are managed safely. Fannie Mae is among the handful of top-quality institutions." One year later, government regulators accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses. This keen financial oversight set the stage for the financial meltdown to follow.

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